Packaging Up Innovation & Radical Management

In May, I was honored to be part of Steve Denning's workshop on his Radical Management principles for redefining 21^stCentury management.  Recognition that we need to find a new way to ‘manage' work is gaining ground. We tend to think of 21^st Century ‘new management' companies as those in ‘cool' industries: Internet, tech, alternative energy, social media, etc. These companies shun command-and-control!  However, there are some "old" "boring" companies that are surprising 21^stCentury.

So, think packaging. You know, those brown boxes that your amazon books come in? Those displays at the end of store aisles that get you to buy more snacks? It's a commodity business, ruled by big huge vertically integrated behemoths with entrenched hierarchies held sacred.  Kind of boring huh?  You bet...not!

In the middle of Wisconsin (not Silicon Valley) is a 163 yr. old, private family business that reinvented itself, pulled a few classic "Blue Oceans" and looks more like a 21^st Century newbie than a 19^th Century oldie: Menasha Packaging Corporation (MPC).   MPC views their transformation as a journey, not a destination.  Their success is due to their most important asset - people.  And it's not just words, its action based on their values.  MPC has organized itself not as a traditional hierarchy, but as a network to enable and foster their culture.

A small headquarters organization is focused on removing obstacles and leveraging synergies while maintaining a strong entrepreneurial culture in each business.  Instead of centralizing the usual functions and capabilities, MPC relies on standardization, when applicable, to drive efficiency without bureaucracy.  Additionally, if one business has expertise another business needs or could use, it's shared in a center of excellence construct across heterogeneous businesses within MPC instead of being duplicated.  This allows each business to use its resources more innovatively, effectively and efficiently...a rather unique approach for an ‘old' company.

In one business, an employee created an engaging way to identify and monitor safety issues.  To her, this was just a normal thing to do - see a problem, create a solution.  Soon it spread through the plant and shifts, becoming named "Safety Snags".  Eventually, this became an internally branded initiative throughout MPC.

MPCs culture of customer co-creation is based on listening to customers, quickly creating prototypes set in realistic environments, getting feedback and iterating the experimentation/prototyping until its right. This is also done across MPC businesses to find the right solution.

My initial perception when I started working with MPC, of an old manufacturing company, was quickly changed, and continues to be.  It is not just the new, young, hip companies that are reinventing management and seeing the results.  So what does this say? That it is really possible to create and sustain innovation in established companies.  Perhaps, it starts by innovating management itself.

Innovation's Enemy? Success!

The saga of Congress, the White House and the budget is horrendous.  If they can’t agree on 1% of the budget for six months, can they really create a budget to cut the deficit and debt for a year?

Everyone took last year’s election as a mandate for one party over the other, but it really was a mandate for an economic revolution. Is the government capable of re-inventing itself? Of innovating?

We can look at other examples, like big companies. There has been a lot discussion of whether or not big companies can innovate. I've seen some do it, but not many. Does that answer the question? Kind of.

What is the biggest inhibitor to innovation? Success! So many of my clients have been both blessed--and cursed--with success, even in this recession, that it’s skewing their perspective of the future.

They are sitting on a lot of cash that they are hoarding...for lots of reasons (like fear of a double dip, etc.). But now is the time to really innovate - to disruptively innovate.

For most of them, the amount of money it would take to experiment, to prototype, to try some things is insignificant compared to what they have in the bank. This may be, for some, the least financially risky time to innovate - financially, not culturally. Culturally, the risk is huge!

They say to themselves, look at how we're doing despite the economy, we must be doing something right! And they were/are...but not for that long. For many their R&D and innovation pipelines are two or three years out max.

Let's look at some who didn't innovate. Remember Wang? DEC (Digital)? The original AT&T (bought out by the kids it spun off)? Hey, Smith Corona? Yahoo!? Blockbuster? In fact, ‘netflixed' is a now a verb! And Blockbuster even says they saw it coming but didn't really heed the warning signs.

Then there are those that were able to reinvent themselves. P&G, IBM, Ford, Apple. What was the difference? People. Management. New leadership (in the case of Apple, original leadership returning) brought in new insights, were not entrenched in the groupthink and were able to see and start the turn-around.

But this isn't easy nor is it typical.  I've had the privilege to work with a few companies that have been able to do this, but again, it's due to very special people. Check out one that still amazes me - Menasha Packaging .